Jasmine's Boutique Has 2,000 Bonds Outstanding with a Face Value

Multiple Choice

Jasmine's Boutique has 2,000 bonds outstanding with a face value of $1,000 each,a market value of $1,060 each,and a coupon rate of 9 percent.The interest is paid semiannually.What is the amount of the annual tax shield on debt if the tax rate is 23 percent?

A) $44,872
B) $460,000
C) $43,884
D) $41,400
E) $487,600